Macro-Economic Modelling of Low Carbon Development and Decarbonisation

Based on macroeconomic and econometric modelling tools, DIW Econ develops low carbon and green growth strategies and scenarios both at the economy-wide and at the sectoral level.

Our strategies and scenarios help decision makers understand the interlinkages of the economy with the environment and current policies. However, for political and economic strategies towards green growth to unfold their potential, the existing set of economic incentives and policy instruments needs to be adjusted. Therefore, we develop and elaborate for each country and each case specifically designed policy instruments.

Moreover, we develop instruments based on carbon pricing by GHG emission trading schemes (ETS) or CO2 taxes, assess and quantify their effects and provide advice for their implementation in practice, including setting up respective rules and regulations.

Related projects are listed below